BioMS Medical announces first quarter 2010 results
Toronto Stock Exchange Symbol: MS
EDMONTON, May 14 /CNW/ - BioMS Medical Corp. (TSX: MS), today announced financial and operational results for the three months ended March 31, 2010.
"Our new strategy is to transition BioMS into an investment and advisory service provider for the healthcare industry and pursuant to this strategy we completed our first strategic investment in Spectral Diagnostics," said Kevin Giese, President and CEO of BioMS Medical. "We continue to evaluate numerous opportunities that could benefit from access to our capital resources and expertise, and were pleased to announce the addition of Nitin Kaushal to our team to help accelerate these activities and ensure our transition is successful."
Highlights:
- Subsequent to the end of the quarter, on May 3, 2010, the Company
announced a strategy to become a service provider to the healthcare
industry whereby BioMS will directly invest in and advise companies
on strategy, financing, mergers & acquisitions (M&A), licensing
transactions and undertake technology development.
- The Company also announced it had hired Mr. Nitin Kaushal, a leading
healthcare investment banker, to implement the Company's new
strategy. Mr. Kaushal brings more than 25 years of financial and
investment experience to BioMS and will serve as its Executive Vice
President and Managing Director.
- BioMS announced it intends to change its name to Medwell Capital
Corp. subject to approval by the Toronto Stock Exchange and
shareholders at the annual general meeting to be held on June 25,
2010.
- In the first quarter, the Company completed its first investment,
acquiring 30,000,000 common shares of Spectral Diagnostics Inc.
("Spectral"), representing 39.57% of its issued and outstanding
common shares, and concurrently acquiring 15,000,000 common shares
purchase warrants of Spectral as well.
- As part of its new strategy, the Company entered into a three year
services agreement with Spectral and will provide clinical,
regulatory and capital markets consulting services in exchange for
$3 million paid to BioMS over the term of the contract.
- On March 3, 2010, Spectral received Investigational Device Exemption
(IDE) approval from the U.S. Food and Drug Administration (FDA) for
Toraymyxin(TM), a treatment for severe sepsis. This approval permits
Spectral to initiate its planned pivotal trial for Toraymyxin(TM) in
the United States.
- Certain employees, officers and directors of BioMS Medical acquired
7,245,000 BioMS shares out of 12,915,365 sold by the University of
Alberta on April 30, 2010.
Financial Results
BioMS is reporting results from both continuing and discontinued operations. Continuing operations consist of activities related to its new strategy of transitioning BioMS into an investment and advisory service provider to the healthcare industry. BioMS' discontinued operations relate to the late stage clinical development program for dirucotide, a drug for the treatment of multiple sclerosis.
The consolidated net income from continuing operations for the three months ended March 31, 2010 was $6.5 million or $0.07 per share compared to a consolidated net loss from continuing operations of $3.8 million or $(0.04) per share for the same period in the previous year.
Revenue earned from the services agreement initiated with Spectral during the quarter amounted to $0.3 million for the three months ended March 31, 2010. Interest income earned on funds invested was $0.03 million for the three months ended March 31, 2010, compared to $0.2 million for the same period in the previous year, due to the decrease in cash and cash equivalents. Total consolidated expenses for the three months ended March 31, 2010 were $2.3 million compared to $4.0 million in the three months ended March 31, 2009.
The consolidated net loss from discontinued operations for the three months ended March 31, 2010 was $0.2 million or $(0.01) per share compared with a consolidated net income from discontinued operations of $2.4 million or $0.02 per share for the same period in the previous year. Upon the conclusion of the MAESTRO-01 clinical trial the Company discontinued the other dirucotide clinical trials, MAESTRO-02 and MAESTRO-03, and completed final collection of data and records.
At March 31, 2010, cash and cash equivalents and short-term investments totaled $34.7 million as compared to $51.4 million at December 31, 2009. At March 31, 2010, the Company had working capital of $33.7 million as compared to $47.5 million at December 31, 2009. Management estimates that the current working capital is sufficient for the Company to meet its obligations.
As at March 31, 2010 there were 91,008,923 Class "A" common shares of the Company issued and outstanding.
Notice of AGM:
The Company's annual general meeting is scheduled to be held at 10:00 am (MST) on June 25, 2010 at Delta Edmonton South Hotel and Conference Center.
About BioMS Medical Corp.
-------------------------
BioMS Medical is a biotechnology company engaged in the investment, development and commercialization of pharmaceutical technologies. For further information please visit our website at http://www.biomsmedical.com.
This press release may contain forward-looking statements, which reflect the Corporation's current expectation regarding future events. These forward-looking statements involve risks and uncertainties that may cause actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, but are not limited to, changing market conditions, the successful and timely completion of clinical studies, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process and other risks detailed from time to time in the Corporation's ongoing quarterly and annual reporting. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
BioMS Medical Corp.
Interim Consolidated Balance Sheets
(Unaudited)
-------------------------------------------------------------------------
(expressed in thousands of Canadian dollars)
March 31, December 31,
2010 2009
$ $
(Unaudited)
Assets
Current assets
Cash and cash equivalents 32,010 48,774
Short-term investments 2,665 2,662
Accounts receivable 250 -
Goods and services tax recoverable 36 37
Other prepaid expenses 77 79
Investments 20,560 -
Assets of discontinued operation - 771
----------- -----------
55,598 52,323
Property and equipment 315 350
----------- -----------
55,913 52,673
----------- -----------
----------- -----------
Liabilities
Current liabilities
Accounts payable and accrued liabilities 345 358
Liabilities of discontinued operation 1,000 4,464
----------- -----------
1,345 4,822
----------- -----------
Share capital 175,714 175,714
Contributed surplus 11,369 10,937
Accumulated deficit (132,515) (138,800)
----------- -----------
54,568 47,851
----------- -----------
55,913 52,673
----------- -----------
----------- -----------
BioMS Medical Corp.
Interim Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
-------------------------------------------------------------------------
(expressed in thousands of Canadian dollars and shares, except per share
amounts)
Three-month period
ended March 31,
-------------------------
2010 2009
$ $
Revenue
Unrealized gain on investments 8,560 -
Contract services 250 -
Interest 32 170
----------- -----------
8,842 170
----------- -----------
Expenses
Operating, general and administrative 1,701 2,075
Stock-based compensation 432 1,845
Amortization of property and equipment 37 43
Foreign exchange loss (gain) 164 (16)
----------- -----------
2,334 3,947
----------- -----------
Net income (loss) from continuing operations 6,508 (3,777)
Net income (loss) from discontinued operation (223) 2,378
----------- -----------
Net income (loss) and comprehensive income (loss) 6,285 (1,399)
----------- -----------
----------- -----------
Basic and diluted net loss per common share -
continuing operations 0.07 (0.04)
Basic and diluted net income (loss) per common
share - discontinued operation (0.01) 0.02
Basic and diluted net income (loss) per common
share 0.07 (0.02)
Basic and diluted weighted average number of
common shares outstanding 91,008,923 91,009,323
BioMS Medical Corp
Interim Consolidated Statements of Cash Flows
(Unaudited)
-------------------------------------------------------------------------
(expressed in thousands of Canadian dollars)
Three-month period
ended March 31,
-------------------------
2010 2009
$ $
Cash provided by (used in)
Operating activities
Net income (loss) 6,285 (1,399)
Items not involving cash
Unrealized gain on investments (8,560) -
Stock-based compensation 432 1,845
Amortization of property and equipment 37 43
----------- -----------
(1,806) 489
Net change in non-cash working capital items (439) (218)
----------- -----------
(2,245) 271
----------- -----------
Investing activities
Net purchase of investments (12,000) -
Net purchase of short-term investments (3) (19)
Purchase of property and equipment (2) (1)
(12,005) (20)
----------- -----------
Financing activities
Proceeds from issuance of share capital - -
Repurchase of share capital - -
----------- -----------
- -
----------- -----------
Foreign exchange (loss) gain on cash and cash
equivalents held in foreign currency 180 169
----------- -----------
Cash (used in) provided by continuing operations (14,070) 420
----------- -----------
Cash used in discontinued operation (2,694) (12,517)
----------- -----------
Decrease in cash and cash equivalents (16,764) (12,097)
Cash and cash equivalents - Beginning of period 48,774 87,826
----------- -----------
Cash and cash equivalents - End of period 32,010 75,729
----------- -----------
----------- -----------
Cash and cash equivalents consists of
Bank accounts 806 846
Interest bearing deposits and securities 31,204 74,883
----------- -----------
32,010 75,729
----------- -----------
----------- -----------
For further information: Tony Hesby, Ryan Giese, BioMS Medical Corp., (780) 413-7152, (780) 408-3040 Fax, E-mail: [email protected], Internet: http://www.biomsmedical.com; James Smith, Investor Relations, (416) 815-0700 ext. 229, (416) 815-0080 Fax, E-mail: [email protected]
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